Unlawful rescission by the landlord. Reimbursement of rent. Oral lease.

The parties entered into an oral lease to the effect that the tenant received a room with access to a kitchen and bathroom in the landlord’s apartment for six months. At the beginning of the rental period the tenant paid ISK 95,000 for the month of October. The landlord rescinded the lease when six days of the rent period had passed on the ground that the tenant’s use of the kitchen and bathroom caused him too much disturbance. Grounds on which a landlord may rescind a lease are stated in Article 61 of the Rent Act, but none of them apply to this case; however, the tenant accepted the rescission and moved out on 10 October. The tenant demanded the repayment of rent for the period 11-31 October, which the landlord rejected.

Under the third paragraph of Article 61 of the Rent Act, the rights and obligations of landlord and tenant expire as from the date of rescission and the tenant is to vacate the premises immediately unless the parties agree on another arrangement and the landlord shall then be entitled to receive rent payments in respect of the time that elapses from the rescission until the tenant has vacated the rented premises in accordance with their agreement.

Conclusion: The landlord was obliged to repay rent paid by the tenant for the period 11-31 October, amounting to ISK 64,365.